Investments bounce back

See how Cbus has bounced back following the Global Financial Crisis.

Investment-Update_2-Feb10The six months ending December 2009 have been outstanding for the Australian share market and most Cbus members' account balances have increased significantly.

From 1 July 2009 to 31 December 2009:

Cbus’ Core Strategy, which has a strategic allocation of 30% to Australian equities, has delivered a return of 10.5%.

The Australian share market has risen by 25.7%.

The Australian share market was boosted largely due to the strength of commodity prices relating to demand from China. Add to this, better than expected news on housing finance, building approvals and employment numbers – and it's good news for Cbus members and the Construction and Building industry.

The international share market returned 9.3%. Particularly encouraging for global share markets was news that many governments (including the US) would continue to hold policies to encourage economic growth.

For members invested in options with exposure to cash, particularly the Capital Guaranteed, Cash and Conservative options, three increases in Australian interest rates have assisted returns for the financial year to date. The official interest rate lifted from 3.00% to 3.75%.

The recovery now appears sustainable, particularly in Australia. However, the global outlook for 2010 is still difficult to predict, as economic conditions remain challenging - particularly in relation to higher levels of unemployment and government debt across the world.

Obviously, past performance is not a reliable indicator of future performance. That's why we recommend members refer to the Member Investment Choice handbook for more information about Cbus' investment options and their performance.